Legal Question in Business Law in California

The term "foreign" as used in your quoted expression refers to and means an entity organized under the laws of another (non-California) jurisdiction, such as Nevada or South Dakota, but can also mean a non-US jurisdiction such as Great Britain. See Corporations Code section 171 for a definition of "foreign corporation" and following sections for definitions of other business entities including a catchall provision in section 171.07. Foreign entities must qualify to do business in California, but they may do so by registering with the California Secretary of State, paying the franchise tax, and making periodic filings. There is no necessity to form a domestic business entity, although many do for practical business reasons.

The attorney above is correct. Also depending on the type of business you are conducting you may have to comply with local and county laws. If you need assistance on this matter please feel free to contact my office.

Jim Betinol

Attorney, Partner

Withrow and Betinol Law

[email protected]

(t) (424) 229-2560

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